Tesla Motors (NASDAQ:TSLA) has expressed an interest in sourcing graphite for its lithium-ion battery gigafactory from North America, and as a result, many investors are excited about companies focused on that region.
However, North America isn’t the only place graphite can be found, and companies are seeking out deposits in other locales as well. In particular, graphite in Africa is attracting interest, with Madagascar, Mozambique, Namibia and Tanzania in particular enjoying attention. With that in mind, the Investing News Network has put together a brief overview of companies exploring for graphite in those countries. Read on to find out what’s got them excited.
Graphite in Africa: Madagascar
- DNI Metals (TSX:DNI) — DNI Metals is developing its Madagascar-based Vohitsara project. In March, most recent news from the company regarding the Vohitsara project was the filing of its NI 43-101 Technical Report with results indicating five trenches consisting of 75 line metres ad 73 samples found in the report. According to the company’s website, the high graphitic content and 70 percent large flake distribution makes it one of the “best quality producers on earth.”
- Energizer Resources (TSX:EGZ) — Energizer Resources is developing its 100 percent-owned feasibility-stage Molo Graphite Project in Madagascar. According to the website, independent testing by a number of third-parties has verified that flake graphite concentrates from the Molo project “meet or exceed quality requirements for all major end-markets for natural flake graphite.” The company’s most recent news was announced on August 18 when it announced that it had closed a non-brokered private placement offering of 96,064,286 common shares.
- Capricorn Metals (ASX:CMM)— Capricorn Metals changed its name from Malagasy Minerals to Capricon Metals in February 2016. The name change came after the company acquired the Karlawinda Gold Project in Western Australia. While the company claims to becoming an emerging gold explorer and developer, it does have at least two potentially large-scale flake size graphite projects: the Maniry and Ianapera, located in a major graphite-bearing province that plays host to Energizer Resource’s Molo Graphite Deposit.
- Bass Metals (ASX:BSM) — Bass Metals acquired London-based Stratmin Global Resources earlier in 2016. The acquisition of the Graphmada large flake graphite mine makes Australia’s only ASX listed operating graphite mine, according to its website.
Graphite in Africa: Mozambique
- Syrah Resources (ASX:SYR) — Syrah Resources has been making significant progress at its Mozambique-based Balama graphite project, which it says holds the largest graphite ore reserves in the world at 81.4 million tonnes at 16.2 percent total graphitic carbon for 13.1 million tonnes of contained graphite. A feasibility study was completed for the project in May 2015, and the company expects to start production in the first quarter of 2017. On August 25, 2016, the company announced it had awarded the Structural, Mechanical ad Piping construction contract for the Balama project to Kentz Engineers & Contractors.
- Triton Minerals (ASX:TON) — Through its majority stake in Grafex, Triton holds eight exploration licenses in Mozambique, six of which have been granted and two of which are in application. Together, they make up three projects: Balama North, Balama South and Ancuabe. The company currently holds an 80 percent interest in Grafex and entered into an arrangement with the minority shareholder of Graxed to purchase the remaining 20 percent in exchange for $5 million in cash and equivalent in Triton shares.
Graphite in Africa: Namibia
- Next Graphite (OTCMKTS:GPNE) — Next Graphite’s Aukam Graphite Project is the only historical graphite project in Namibia. According to the company, it put out 25,000 tonnes of graphite between 1940 and 1974. On August 16, Next Graphite announced it had begun the start of underground exploration at the Aukam project, with the next phase of work focusing on delineating resources in support of an application for a mining license by 2017.
Graphite in Africa: Tanzania
- Kibaran Resources (ASX:KNL) — Kibaran Resources’ main focus is to fast-track the Epako Graphite project into development. The company is also making progress at its Merelani-Arusha graphite project, and owns the Tanga graphite project and the Kagera nickel project. All four projects are in Tanzania. The company announced on August 22 that it had started studies on expanding the Epanko Graphite project, which will focus on increasing the project’s capacity from 40,000 tonnes a year of graphite concentrate to 60,000 tonnes.
- Magnis Resources (ASX:MNS)— Magnis Resources is a near-term graphite producer with its Nachu project in South East Tanzania. In March 2016, the company released the first results of the Bankable Feasibility Study which, according to its website, highlight “exceptional returns and low technical risk of Nachu.” Pre-production for Nachu is estimated at $269 million, including an 11 percent contingency.
- Volt Resources (ASX:VRC) — Volt Resources, formerly known as Mozambi Resources, is focused on the exploration and development of its wholly owned Namangale Graphite Project in Tanzania. In August, the company announced “significant progress” had been made at the Namangale graphite project.
- Walkabout Resources (ASX:WKT) — Walkabout Resources is exploring for both coal and graphite, and holds the Lindi graphite project in Southeastern Tanzania. The company’s most recent graphite news came in June, when it released its “Best in Class” metallurgical results.
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Did we miss a graphite company that’s focused on one of these countries? Let us know in the comments!
This is an updated version of an article published on Graphite Investing News on August 25, 2014.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Energizer Resources, Magnis Resources and Next Graphite are clients of the Investing News Network. This article is not paid-for content.